Vehicle to Vehicle communication (V2V) has taken place in research interest for many purposes such as road safety and traffic management. An accurate estimation for vehicular node position is important for such type of communication. A vehicular node can be equipped with Global Positioning Systems (GPS) to estimate its position. In practice, many vehicular nodes may lose GPS signals in rural regions due to dense foliage, or in urban regions due to compact high buildings. In this paper, the received signal strength indication (RSSI) is exploited to assist vehicular nodes to estimate their locations using inter-vehicle communication. High dynamic network topology in V2V is expected due to high node mobility. As a result, the localization error due to signal strength measurements clearly increases compared to low dynamic network topology. The proposed scheme is self-correcting solution which studies the network topology scenarios that increase localization errors and introduces optimal techniques to minimize such errors. Performance evaluation and simulation results show that this work improves localization accuracy and increases the number of vehicular nodes that estimate their locations compared to existing localization schemes.